Labuan Tax for Investment Holding Company
Labuan Investment Holding Company has a high degree of confidentiality with an operating flexibility. It is a structure favored by many entrepreneurs and business owners to hold various assets from personal to corporate. In short, Labuan Investment Holding Company is able to invest and hold assets, properties, equities and various other investments in any form on an international scale.
Benefits of a Labuan Investment Holding Company
Labuan Investment Holding company can be used for structuring purposes on numerous foreign companies and entities to consolidate all earnings. Having an Investment Holding company allows for ownership to be maintained throughout the structure, makes acquisitions simpler in the event of buy out or sale of the entire group, promotes asset and wealth protection and allows for risk reduction through diversification (holding of several businesses in various industries).
Key Tax Profile of Labuan Investment Holding Company：
* 0% tax on all holding assets and properties with submission of Management account only
* No withholding tax on dividends, interest, management fee, royalty and technical fees
* No sales tax, GST, service tax for all international dealings
* 0% personal income tax on Directors’ fee for foreign individual or corporate director
* 50% tax rebate on personal income on foreign professional employment
* 65% tax rebate on personal income on local Malaysian professional employment
* No stamp duty for instruments in connection with Labuan business activities, including transfer of shares
* Able to access to more than 70 Malaysia’s tax treaty partners
* No foreign exchange control using Labuan offshore bankers
* No tax on interest earned on deposits placement in Labuan offshore bankers.
|Type of Compliance||Reporting Party||Due Dates|
|Annual Return||Labuan FSA||1 month before anniversary of incorporation date|
|Annual Company Fee||Labuan FSA||On and before anniversary of incorporation date|
|Corporate Tax||Inland Revenue||By 31st March, extendable to 31st May|
|Employer Return - Form E||Inland Revenue||By 31st March|
|Employee Return - Form BE||Inland Revenue||By 30th April|
|Audit Report/Management Account||Labuan FSA/CP Trust||By 30th Sept|
|Marketing Office Fee (if any)||Labuan FSA-Fee RM7,500||By 15th Jan|
|Co-Located Office Fee (if any)||Labuan FSA-RM10,000||By 15th Jan|
Feel free to enquire with us how to set up the right Investment Holding structure to meet your objectives. We “simplify the complexities” of your Labuan investment.